title
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF INDUSTRIAL REVENUE BONDS IN THE CITY OF JONESBORO, DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES (NOTE: THIS ORDINANCE WAS AMENDED BY ORD-64:2721 ON JULY 6, 1964)
body
WHEREAS, the City of Jonesboro is duly authorized by Act 9 of the Acts of the General assembly of the State of Arkansas for 1960 to promote industrial development within or near the City of Jonesboro, to issue Industrial Revenue Bonds, and to use the proceeds thereof for the accomplishment of the said purpose, to pledge the gross revenues derived from the lands, buildings and facilities acquired or constructed, in whole or in part, with proceeds of the said Industrial Revenue Bonds, and to secure the payment of the said Industrial Revenue Bonds by a statutory mortgage lien on the lands, buildings, and facilities so acquired or constructed; and
WHEREAS, by Ordinance duly passed on the 1st day of May, 1961, there was submitted to the qualified electors of the City of Jonesboro, Arkansas, the question whether it should issue Industrial Revenue Bonds, under the provisions of said Act 9 to the extent of $200,000.00 for the purpose of securing and developing industry within or near the City of Jonesboro, and
WHEREAS, due notice of the election was given, as required by law, and at said election 696 votes were cast in favor of the said bond issue for industrial development, and only 16 votes were cast against it; and
WHEREAS, $145,000.00 of Industrial Revenue Bonds were issued under date of August 1, 1961, and designated as "Series A." The City of Jonesboro now determines that it is in furtherance of the expressed purpose of the law above recited and of the citizens of Jonesboro to further aid in the preparation of location of additional industries by purchase of land and that it is in the public interest to issue the remaining $55,000.00 in bonds for such purpose, which issue shall be known as "Series B."
NOW, THEREFORE, be it ordained by the City Council of the City of Jonesboro:
Section 1: That the City of Jonesboro, Arkansas, issue its Industrial Revenue Bonds under the provisions of Act 9 of the Acts of the General Assembly of the State of Arkansas for 1960, in the principal amount of $55,000.00, payable solely from the sale, rentals or proceeds derived form the lands to be acquired; that the said bonds be designated "City of Jonesboro 5 ½ % Industrial Revenue Bonds, Series B," be dated as of October 1, 1962, bearing interest at the rate of 5 ½ % per annum from date, payable semi-annually on the first day of April and October in each year, beginning April 1, 1963, evidenced by coupons attached thereto; and that the bonds be in the denominations, numbered and maturing on April 1 and October 1 in the amounts of years, respectively, as follows, but subject to redemption before maturity on the conditions hereinafter set out:
DATE BOND NOS. AMOUNT DATE BOND NOS. AMOUNT___
1966 1 - 2 $2,000.00 1976 21 - 22 $ 2,000.00
1967 3 - 4 2,000.00 1977 23 - 24 2.000.00
1968 5 - 6 2,000.00 1978 24-26-27 3,000.00
1969 7 - 8 2,000.00 1979 28-29-30-31 4,000.00
1970 9 - 10 2,000.00 1980 32-33-34-35 4,000.00
1971 11 - 12 2,000.00 1981 36-37-38-39 4,000.00
1972 13 - 14 2,000.00 1982 40-41-42-43 4,000.00
1973 15 - 16 2,000.00 1983 44-44-46-47 4,000.00
1974 17 - 18 2,000.00 1984 48-49-50-51 4,000.00
1975 19 - 20 2,000.00 1985 52-53-54-55 4,000.00
$55,000.00
(All bonds in denomination of $1,000.00 each)
All bearing Interest Coupons at rate of 5 ½ % that the bonds be signed in the name and on behalf of the City by the Mayor and City Clerk, and sealed with the corporate seal of the City, and that the interest upon the bonds be evidenced by coupons thereto attached, the coupons to be signed by the Mayor, by his facsimile signature; that the Mayor shall, be the execution of the bonds, adopt as and for his own proper signature his facsimile signature appearing on the said coupons; that the bonds and coupons be payable in lawful money of the United States of America at the office of Mercantile Bank, in Jonesboro, Arkansas; and that each bond contain a recital that it is issued pursuant to said Act 9 of the Acts of the General Assembly of Arkansas for the year 1960.
The bonds, together with interest thereon, shall be payable solely out of the Industrial Revenue Dong Fund, as hereinafter defined, and shall be a valid claim of the holder thereof only against such Fund, and the amount of the revenues pledged to said Fund, which amount of Said revenues is hereby pledged and mortgage for the equal and ratable payment of the bonds, and shall be used for no other purpose than to pay the principal of and interest on the said bonds.
Section 2: That said bonds and coupons be in substantially the following forms:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF CRAIGHEAD
CITY OF JONESBORO
5 ½ INDUSTRIAL REVENUE BONDS, SERIES B
No.__________ $_____________
KNOW ALL MEN BY THESE PRESENTS:
That the City of Jonesboro (herein called the "City"), in the County of Craighead and State of Arkansas, hereby acknowledges itself to owe, and for value received promises to pay to bearer, solely from the special Fund provided as hereinafter set forth, the principal sum of $ on the first day of ____________, 19___, and to pay, solely from said special Fund, interest hereon at the rate of five and one-half per centum (5 ½ %) per annum from October 1, 1962, payable semi-annually on the first day of April and October of each year, upon presentation and surrender of the annexed interest coupons as they severally become due. Both principal hereof and interest hereon shall be payable in lawful money of the United States of America at the office of Mercantile Bank in Jonesboro, Arkansas.
This bond is one of a duly authorized series of _____________________ ( ) bonds, aggregating Fifty-five Thousand Dollars ($55,000.00) dated October 1, 1962, numbered from 1 to 55, inclusive, all of like tenor and effect except as to maturity, issued for the purpose of providing for the payment of the costs of acquisition and improvement of lands in the industrial development within or near the City of Jonesboro, Arkansas.
This bond and the series of which it forms a part are issued under and pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act No.9 of the special session of the General Assembly of the State of Arkansas for the year 1960, and pursuant to ordinances and proceedings of the City Council duly passed, and do not constitute an indebtedness of the said City within any constitutional or statutory limitations.
Both principal of and interest on said bonds are payable solely from the rents, income, or proceeds of sale derived and to be derived from the lands and properties purchased with the proceeds of this issue, together with any surplus moneys or the proceeds there from resulting from said issue and not required for the purchase of lands. All said amounts have been duly set aside and a pledged as special fund for such purpose and identified as the "Industrial Revenue Bond Fund" created by Ordinance No. ______duly passed by the City Council of the City of Jonesboro on the 6th day of August, 1962, under which this bond is authorizes to be issued.
By virtue of the authority of said Act No.9 of the special session of the General Assembly of the State of Arkansas for the year 1960, there is granted and created a statutory mortgage lien on the said lands to and in favor of the holders of the said bonds and each of them, and to and in favor of the holders of each of the coupons evidencing the interest on said bonds; and said lands shall remain subject to such statutory mortgage lien until the payment in full of all of said bonds, both principal and interest, shall have been made.
This bond is expressly made negotiable under said Act No.9 and is issued with the interest that the laws of the State of Arkansas shall govern the construction thereof.
The bonds of this issue may be called for redemption before maturity, at the option of the City, from time to time, in such order as the City may elect, in lawful money of the United States of America, as par and accrued interest in any order, on any interest payment date, form proceeds from the sale of the said bonds in excess of the amounts necessary to pay the costs of acquiring the lands or improving same, for which purpose the said bonds are issued, and may be called for redemption before maturity, at the option of the City, from time to time, in inverse numerical order, in lawful money of the United States of America, at par and accrued interest, on any interest payment date from any other available funds. Notice of the call for the redemption shall be given by the city, in writing, to the holders of the bonds so called, and after the date of such notice the bond or bonds so called will cease to bear interest; provided, funds for their payment are on deposit at that time.
IT IS HEREBY CERTIFIED, RECITED, AND DELARED that all acts, conditions and things required by the Constitution and laws of the State of Arkansas to exist, happen and be performed precedent to and in the issuance of this bond have existed, have happened, and have been performed in due time, form and manner, as required by law, and that all of the income and revenue which is deemed to be derived from the property to be acquired has been pledged to and will be set aside into said special Fund for the payment of the principal of and interest on said bonds; and that the total amount of the bonds issued by the City, including this bond, does not exceed any constitutional or statutory limitation.
This bond shall not be valid until it shall have been authenticated by the certificate hereon, duly signed by Citizens Bank of Jonesboro.
IN WITNESS WHEREOF, the City of Jonesboro, by its City Council, has caused this bond to be signed by the Mayor and the City Clerk thereof, and sealed with the corporate seal of said City, and has caused the coupons hereto attached to be authenticated, by the facsimile signature of its Mayor, all as of the first day of October, 1962.
CITY OF JONESBORO, ARKANSAS
By: ________________________________
Mayor
ATTEST:
_______________________________
CITY CLERK
(FORM OR COUPON)
No.____________ Bond No.________ $___________
On the first day of April, 19___, the City of Jonesboro, Craighead County, Arkansas,
October, 19___
promises to pay to bearer the sum of _______________________Dollars ($__________)
solely out of the special Fund specified in the bond to which this coupon appertains, at the office of Mercantile Bank in Jonesboro, Arkansas, in lawful money of the United States of America, being six months' interest then due on its 5 ½ %, Industrial Revenue Bonds, Series B, dated the first day of October, 1962, unless the bond to which it appertains is sooner called for payment.
CITY OF JONESBORO, ARKANSAS
By: HERBERT SANDERSON, MAYOR
On the back of said bonds is to appear the following:
C E R T I F I C A T E
This is one of be bonds aggregating $55,000.00 described within.
CITIZENS BANK OF JONESBORO
By: ______________________________
Authorized Signature
Jonesboro, Arkansas
______________________
Section 3: That all moneys paid as accrued interest on the bonds issued hereunder shall be deposited into the Industrial Revenue fund hereinafter created, and applied to the payment of interest payable on said bonds on the next interest payment date.
Section 4: That so long as any of the principal of and interest on any of the bonds herein authorized to be issued are outstanding, the entire income and revenues form any and all proceeds or leases of the lands and premises acquired from the proceeds of the bonds of this issue shall be set aside and deposited in a special Fund, hereby created and ordered to be established with Citizens Bank of Jonesboro (hereinafter called "Trustee") to be known as the "Industrial Revenue Fund." And disbursements there from shall be made as hereinafter provided for, in the following order of property:
(a) There shall be set aside and deposited into a separate fund, hereby created and ordered to be established with the Trustee, to be known as the "Industrial Revenue Bond Fund," the amounts necessary to provide funds for the payment of principal of and interest on the bonds as they mature and paying agent's charges, according to the following schedule, which amounts are hereby irrevocably pledged for said purposes:
UNPAID
DATE PRINCIPAL INTEREST TOTAL BALANCES
$55,000.00
4-1-63 $1,512.50 $1,512.50 55,000.00
10-1-63 1,512.50 1,512.50 55,000.00
4-1-64 1,512.50 1.512.50 55,000.00
10-1-64 1.512.50 1.512.50 55,000.00
4-1-65 1,512.50 1,512.50 55,000.00
10-1-65 1,512.50 1,512.50 55,000.00
4-1-66 $1,000.00 1,512.50 2,512.50 54,000.00
10-1-66 1,000.00 1,485.00 2,485.00 53,000.00
4-4-67 1,000.00 1,457.50 2,457.50 52,000.00
10-1-67 1,000.00 1,430.00 2,430.00 51,000.00
4-1-68 1,000.00 1,402.50 2,402.50 50,000.00
10-1-68 1,000.00 1,375.00 2,375.00 49,000.00
4-1-69 1,000.00 1,347.50 2,347.50 48,000.00
10-1-69 1,000.00 1,320.00 2,320.00 47,000.00
4-1-70 1,000.00 1,292.50 2,292.50 46,000.00
10-1-70 1,000.00 1,265.00 2,265.00 45,000.00
4-1-71 1,000.00 1,237.50 2,237.50 44,000.00
10-1-71 1,000.00 1,210.00 2,210.00 43,000.00
4-1-72 1,000.00 1,182.50 2,182.50 42.000.00
10-1-72 1,000.00 1,155.00 2,155.00 41,000.00
4-1-73 1,000.00 1,127.50 2,127.50 40,000.00
10-1-73 1,000.00 1,100.00 2,100.00 39,000.00
4-1-74 1,000.00 1,072.50 2,072.50 38,000.00
10-1-74 1,000.00 1,045.00 2,045.00 37,000.00
4-1-75 1,000.00 1,017.50 2,017.50 36,000.00
10-1-75 1,000.00 990.00 1,990.00 35,000.00
4-1-76 1,000.00 962.50 1,962.50 34,000.00
10-1-76 1,000.00 935.00 1,935.00 33,000.00
4-1-77 1,000.00 907.50 1,907.50 32,000.00
10-1-77 1,000.00 880.00 1,880.00 31,000.00
4-1-78 1,000.00 882.50 1,852.50 30.000.00
10-1-78 2,000.00 825.00 2,825.00 28,000.00
4-1-79 2,000.00 770.00 2,770.00 26,000.00
10-1-79 2,000.00 715.00 2,715.00 24,000.00
4-1-80 2,000.00 660.00 2,660.00 22,000.00
10-1-80 2,000.00 605.00 2,605.00 20,000.00
4-1-81 2,000.00 550.00 2,550.00 18,000.00
10-1-81 2,000.00 495.00 2,495.00 16,000.00
4-1-82 2,000.00 440.00 2,440.00 14,000.00
10-1-82 2,000.00 385.00 2,385.00 12,000.00
4-1-83 2,000.00 330.00 2,330.00 10,000.00
10-1-83 2,000.00 275.00 2,275.00 8,000.00
4-1-84 2,000.00 220.00 2,220.00 6,000.00
10-1-84 2,000.00 165.00 2,165.00 4,000.00
4-1-85 2,000.00 110.00 2,110.00 2,000.00
10-1-85 2,000.00 55.00 2,055.00 .00
Total $55,000.00
Section 5: That it is hereby covenanted and agreed by the City with the holder or holders of the bonds herein authorized to be issued that it will not pledge, mortgage, or otherwise encumber the lands or properties acquired with the proceeds of this issue or any part thereof, or any revenues derived there from, and that it will not sell, lease or otherwise dispose of same, or any portion thereof, unless and until the principal of and interest on all of the bonds issued hereunder shall be paid in full, or unless or until provision shall have been made for the payment of all the bonds and interest thereon in full.
Section 6: That there shall be, and there hereby is, as provided in said Act No.9, a statutory mortgage lien on the following described lands and improvements hereon in the City of Jonesboro in the Western District of Craighead County, State of Arkansas, to-wit:
That tract of land in the Northwest Quarter of the Northwest Quarter of Section 18 and the Northeast Quarter of the Northeast Quarter of Section 13, Township 14 North, Range 4 East, bounded on the North by Lost Creek Ditch, on the East by the Northwest Addition to Jonesboro, Arkansas, on the South by Word Avenue for a distance of approximately 800 feet from the Southwest corner of Northwest Addition to McClure Street (sometimes designated Seventh Street), thence North to Gordon Street extended, thence West to Culberhouse Street, and the West boundary being Culberhouse Street form Gordon Street extended to Lost Creek Ditch, including all rights-of-way of undedicated or unopened streets, and being otherwise described as: Lots A, B, D, E, F, G, H, I, J, K and L of Fairgrounds Addition to the City of Jonesboro, Arkansas;
which shall exist in favor of the holders of the bonds, and each of them, and to and in favor of the holders of the coupons attached to the bonds, and the said lands shall remain subject to such statutory mortgage lien until the payment in full of the interest on and principal of the said bonds. To the end that a record of the statutory mortgage lien on the said lands, the pledge of revenues, and the agreement not to mortgage the said lands, as set out in this Ordinance, may be preserved, the Mayor and City Clerk are hereby authorized and directed to file with the Recorder of Craighead County, Arkansas, a copy of this Ordinance, duly certified, with the direction that the same be recorded in the office of the Recorder, as in the case of deeds and mortgages.
Section 7: That if there be any default in the payment of either the interest on, or principal of any bonds, and such default shall continue for thirty (30) days thereafter, and if default shall be made in the due and punctual performance of any of the other covenants and agreements contained in the bonds or in this Ordinance, the holder, or holders, of any of the bonds may enforce the statutory lien upon the said lands and buildings in accordance with the provisions of Section 9 of said Act 9, and may by proper suit compel the performance of the duties of the officials of the City, as set forth in said Act and in this ordinance. If there be default in the payment of the principal of or interest on the bonds, and such default shall continue for thirty (30) days thereafter, any court having jurisdiction in any paper action may appoint a receiver to administer the said lands and improvements on behalf of the City.
Section 8: That no remedy conferred by this Ordinance upon any holder or holders of the bonds herein authorized is intended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without exhausting and without regard to any other remedy conferred by this Ordinance or said Act, or by any other law. No waiver of any default or breach of duty or contract by any holder of the bonds shall extend to or shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the holder of the bonds herein authorized may be enforced and exercised form time to time and as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued or abandoned, or shall be determined adversely to the holder or holders of the bonds, then and in every such case the City and such holder or holders shall be restored to their former positions and rights and remedies as if no such suit, action or proceeding had been brought or taken.
Section 9: That, all bonds paid or called for redemption, either at or before maturity, shall be canceled when such payment or redemption is made, together with all un-matured coupons appertaining thereto. All unpaid interest coupons maturing on or prior to the date of such payment or redemption shall continue to be payable to the respective bearers thereof.
Section 10: That the bonds, together with interest thereon, shall be payable solely out of the Industrial Revenue Bond Fund, as hereinafter defined, and shall be a valid claim of the holders thereof only against said Fund, and the amount of the revenues pledged to said Fund, which amount of said revenues is hereby pledged for the equal and ratable payment of the bonds and shall be used for no other purpose than to pay the principal of and interest on the bonds as the same accrue.
Section 11: The City further covenants and agrees that so long as any of the Industrial Revenue Bonds, Series B, are outstanding and the interest thereon has not been paid in full, it will issue no additional bonds payable form the rentals from and the said property, or secured by a lien on the lands acquired with proceeds of said issue, on a par with the said Industrial Revenue Bonds.
Section 12: The bonds of this issue may be called for redemption before maturity, at the option of the City, form time to time, in such order as the City may elect, in lawful money of the United States of America, at par and accrued interest, on any interest payment date from proceeds from the sale of the said bonds in excess of the amounts necessary to ay the costs of acquiring the lands and the construction of improvements thereon for which purpose the said bonds are issued, and may be called for redemption before maturity, at the option of the City, from time to time, in inverse numerical order, in lawful money of the United States of America, at par and accrued interest, on any interest payment date from any other available funds. Notice of the call for the redemption shall be given in writing to the holders thereof, and after the date mentioned in said call, the bond or bonds so called will cease to bear interest: provided, funds for their payment are on deposit at that time.
Section 13: After the bonds herein authorized to be issued have been executed by the Mayor and City Clerk, as herein provided, they shall be delivered by the Mayor to Citizens Bank of Jonesboro, which shall authenticate and deliver them to the purchaser, upon the payment of the purchase price in the sum of $55,000.00.
The purchase price, less any accrued interest paid by the purchaser, shall be deposited in Citizens Bank of Jonesboro, in trust, secured as its other trust funds are secured, and disbursed by it solely in payment of the costs of the acquisition of lands and improvements thereof, including all expenses incidental to the acquisition and issuance of the bonds, on checks or vouchers signed by President and Secretary of Jonesboro Industrial Development Corporation, briefly specifying the disbursements or expenditures. Any unexpended balance remaining after such expenditures shall be deposited in the Industrial Revenue Bond Fund defined herein.
Section 14: That if any provision of this Ordinance shall, for any reason, be held illegal or invalid by the courts, it shall not affect the validity of the remainder of the Ordinance.
Section 15: That, all ordinances or resolutions or parts thereof in conflict therewith are hereby repealed to the extent of such conflict.
Section 16: It is ascertained and declared that the safety and health of the City of Jonesboro are jeopardized by the lack of sufficient industry and that only by action made possible by this Ordinance can the City undertake to secure and develop industry and to promote the safety, health and welfare of its citizens. It is, therefore, declared that an emergenc6y exists, that this Ordinance is necessary for the immediate preservation of the public peace, health and safety, and that this Ordinance shall take effect and be in force from and after its passage.
PASSED and ADOPTED this 6th day of August, 1962.